Changling Hydraulic(SH:605389) Zhong Guo Jing Ji Wang·2025-07-11 06:49Core Viewpoint - Changling Hydraulic (605389.SH) announced a significant change in control with the transfer of shares from major shareholders to new entities, leading to a stock price surge of 10% upon resumption of trading [1][5]. Share Transfer and Control Change - On July 10, 2025, shareholders Xia Jifa and Xia Zemin signed share transfer agreements to transfer a total of 43,211,714 shares, representing 29.99% of the total shares, to Wuxi Hexin Tingtao Technology Partnership and Jiangyin Chenglian Shuangying Investment Partnership [1][4]. - Wuxi Hexin Polang Technology Partnership plans to make a partial tender offer for 17,290,448 shares, accounting for 12.00% of the total shares, to all shareholders excluding the aforementioned entities [2]. - After the completion of the share transfer and tender offer, the actual controller of the company will change to Hu Kangqiao, founder of Hexin Interconnect Technology [3]. Financial Details - The total payment for the transaction amounts to 2.1126566 billion yuan [3]. - The funding for the transaction will come from the legal self-owned funds of Chenglian Shuangying and Hexin Tingtao, as well as self-raised funds from Hexin Polang [3]. Stock Performance and Market Reaction - Following the announcement, Changling Hydraulic's stock resumed trading with a price of 42.03 yuan, reflecting a 10.00% increase and a total market capitalization of 6.056 billion yuan [1]. Company Background and Financial Performance - Changling Hydraulic was listed on the Shanghai Stock Exchange on March 22, 2021, with an initial issuance of 24.33 million shares at a price of 39.40 yuan per share, raising a total of 958.736 million yuan [6]. - The company reported revenues of 867 million yuan, 907 million yuan, 896 million yuan, 806 million yuan, and 883 million yuan from 2020 to 2024, with net profits of 236 million yuan, 202 million yuan, 127 million yuan, 102 million yuan, and 95 million yuan during the same period [8].